January 30, 2017 Arizona HOA Legislation Update #2

Monday, January 30, 2017

With the deadline to introduce new legislation in the Senate on Monday, January 30th, it is predicted that there will be a flood of bills introduced prior to the deadline at 5:00 p.m. After the deadline, no new bills will be able to be introduced in the Senate (the House deadline is February 10th). However, there is still the possibility of utilizing the Strike Everything Amendment, which removes the language from an existing bill and replaces it with completely new language. We will continue to monitor all new legislation and amendments.

This session, there are several bills currently on our radar that directly impact Arizona HOAs. These bills include:

Statute declaring that a homeowners' association has no authority over and cannot regulate any roadway for which the ownership has been dedicated to or is otherwise held by a governmental entity applies to all planned communities without regard to whether the declaration is recorded before or after the effective date of this legislation. Previously, these provisions applied only to planned communities for which the declaration was recorded after December 31, 2014.

Expands the list of reasons a condo or HOA board member is required to declare a conflict of interest to include any contract, decision or other action for compensation taken by the board that would benefit any employer or employee of that member. For all circumstances where a condo or HOA board member declares a conflict of interest, the board member is prohibited from playing a part directly or indirectly in the board's deliberations or vote on that issue, instead of being permitted to vote after the declaration.